Chiquita and Fyffes offer EU concessions for $526m merger

Fyffes and US fruit producer Chiquita have offered concessions to European Union regulators to allay concerns that their proposed $526 million tie-up may reduce competition.

The merged entity will have 14 per cent of the $7-billion global banana market, making it the world’s biggest banana supplier with a significant negotiating power versus retailers.

The companies submitted proposals on Friday, the European Commission said on its website today.

The EU competition watchdog, which has set an October 3rd deadline for its decision, did not provide details in line with its policy.

Chiquita and Fyffes compete with Fresh Del Monte and Hawaii-founded Dole Food Company.

Last week Chiquita postponed a shareholder meeting to vote on its proposed acquisition of Fyffes to assess an alternative bid.

Cutrale and Safra last month made a takeover proposal for Chiquita of $13 a share. Cutrale, a closely held company controlled by Brazil's Jose Luis Cutrale, is partnering with banks owned by Joseph Safra, the country's second-richest man, to break up the Fyffes deal.